According to Interfax, yesterday the government commission agreed upon export duty relief for high viscosity oil at the level of 10% of standard export duty.
To recap, earlier the Russian government came with the initiative to introduce a new export duty relief for superviscous oil, so called ‘10-10-10’, which implied the export duty for oil with viscosity exceeding 10 thousand centipoises to be 10% of the normal export duty rate for 10 years. We believe that none of the Russian companies currently produces significant volumes of this type of oil. However, we admit that the new legislation might indeed help to promote the development of additional reserves of crude oil with the required characteristics. We see no immediate effect from the news.